White Cliff Minerals (ASX:WCN) has opted to stand beside its shareholders by outlining a capital raising spearheaded by a 1:2 non-renounceable rights issue priced at $0.002.
The rights issue will aim to raise $1.88 million of which $1 million will be underwritten.
Furthermore, White Cliff has mandated the underwriter to raise up to an additional $1 million by way of a share placement at the same price, on a best endeavours basis.
Todd Hibberd said: “By undertaking a rights issue, all existing shareholders will be given the opportunity to acquire new shares at the same price that the company is seeking to raise additional funds from new professional investors.
“If the maximum funds are raised from both the rights issue and placement, the company will be securely funded through to 2018 such that its primary focus can be on adding resource ounces at Aucu.”
Use of funds
The funds raised by the rights issue and proposed placement will be used primarily for:
- Drilling of the Company’s flagship Aucu gold project in the Kyrgyz Republic and associated exploration costs;
- Drilling of selected gold targets within the company’s Western Australian gold project tenement package;
- General working capital; and
- Pursuing a dual listing of the Company’s ordinary shares on the U.K. AIM market.
Indicative timetable
Indicative dates for a proposed timetable are as follows:
- 4 August: Lodge prospectus;
- 9 August: Record date;
- 11 August: Documents sent to eligible shareholders;
- 25 August: Rights offer closing date; and
- 28 August: New shares quoted on deferred settlement basis.
Growing the Aucu gold resource
During April 2017, White Cliff posted a 93% increase to its JORC resource at its 90% owned Aucu gold project located in the Kyrgyz Republic of central Asia.
The high-grade Aucu gold deposit now stands at 1.8 million tonnes grading 5.2 g/t gold for 302,000 ounces of gold.
The new resource estimate represents a 23% increase in gold grade and also includes a Inferred copper resource of 608,000 tonnes grading 0.64% copper for 3,870 tonnes of copper.
Importantly the new resource contains a high-grade zone referred to as the Quartz Zone of 244,000 tonnes at 9.5 g/t gold containing 75,000 ounces of gold which starts at surface.
A new inferred copper resource was also identified above a cut-off grade of 0.25% copper of 608,000 tonnes at 0.64% copper containing 3,870 tonnes of copper.
Drilling has already commenced
White Cliff recently commenced the 2017 field season drill program at Aucu and mineralisation was inspected in the first hole, which is to be officially assayed at the lab.
Phase one drilling comprises 15 holes for 1,200 metres of reverse circulation drilling and is focusing on the deposit’s high grade Quartz Zone.
Drilling is targeting the Quartz Zone structure along strike from previous drilling which defined an inferred resource of 244,000 tonnes at 9.5 g/t containing 75,000 ounces of gold.
Once the strike extent of the Quartz Zone has been defined the company will drill a series of deeper holes to test the mineralisation at depth.